Biotechnology Policy

for the
State of Gujarat
(2016-21)

Department of Science &Technology

Government of Gujarat
2016

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 Gujarat State
Biotechnology (BT) Policy (2016-21)

Government of Gujarat

Science and Technology Department

Government Resolution No: BTP/102016/391/BT

Sachivalaya, Gandhinagar

Date: 26th December, 2016

RESOLUTION

Read: GR of DST dated 17th April, 2007, No: BOT/102006/76410/BT-Part-I

1. PREAMBLE
Biotechnology is one of the world’s fastest growing technologies, registering a growth rate

of about 10% per annum. The global Biotechnology revenues have crossed266 billion USD

mark.

1.1 National Scenario

Biotechnology has grown at a rate of 12% over the last five years with average exports growing

between 40-60%, with a revenue generation of INR 28,185crores in 2014-15 for India. By 2025,

the Biotechnology sector will be larger than USD100 billion in India.

1.2 Biotechnology Industries in Gujarat

Biotechnology Industry in Gujarat has a size of about Rs. 4000Crores. Pharmaceuticals &

Healthcare sector contributes a major share of the industry at 46% (Rs. 1823 Crores) followed

by Agriculture Biotechnology Sector contributing about 21% (Rs. 834 Crores). There are 154

registered Biotechnology firms in Gujarat, out of which 21 firms have revenues ranging between

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Rs. 50 and 500 Crores. For the past few years, the numbers of Biotechnology companies in

Gujarat have been increasing exponentially. Pharmaceuticals and Healthcare Biotechnology,

Agriculture Biotechnology, Industrial Biotechnology, Food Biotechnology, Environmental

Biotechnology, Bio-services and Bioinformatics are the rapidly emerging sub sectors.

Biotechnology is considered as opportunity sector since last 30-35 years but the latest

advancements like CRISPR (clustered regularly interspaced short palindromic repeats), 3D

printing of organs, biochips, etc. has many potential applications and created immense

opportunities in the field of Biotechnology which India as country and Gujarat as state should

not miss out.

The National Biotechnology Development Strategy (2015-20) has been framed to accelerate

the pace of growth of Biotechnology sector in India at par with global requirements. This strategy

focuses on providing impetus to utilize knowledge and tools to the advantage of humanity,

launch effort backed by significant investment for generation of biotechnology products,

processes and technologies, empower human resource, create a strong infrastructure for

research, development and commercialization for a robust bio-economy and establish India as

a world class bio-manufacturing hub.

To remain consistent and complement the efforts of the “National Biotechnology Strategy (2015-

20)” as well as to incentivize different stakeholders, Government of Gujarat has decided to lay

down new Policy in alignment with national strategy which will boost the present growth and

development opportunities in the state.

2. BIOTECHNOLOGY (BT)POLICY
With a view to providing focused attention on the subject and addressing the global

developments and their cascading effect, formulation of a Biotechnology Policy for the state of

Gujarat has become imperative. Therefore, after careful consideration, the Government of

Gujarat has decided to lay down the Biotechnology (BT)Policy of the state as under:-

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2.1. Vision
Building up competencies of global scale in research, development and commercialization in

Biotechnology sector, capable of harnessing the true potential of the sector in a sustainable way

to achieve disease-free, nutritionally-secure, prosperous society living in a safe and clean

environment.

2.2. Mission
1. To make Gujarat a preferred and globally competitive destination for development of

Biotechnology products and services.

2. To promote the availability of quality and cost –efficient affordable Bio- technologies,

Bio-products and Bio-services to the end users.

3. To generate awareness and support the popularization of Bio-technologies, Bio-

products and Bio-services for the benefit of the society.

4. To identify, strengthen and harness the potential human resource for quality in

education, research and entrepreneurship.

5. To conserve Bio-resources using modern Biotechnology tools and utilize it

sustainably for the benefit of the society.

6. To forge global partnerships in emerging technologies with leading Biotechnology

organisations/agencies/institutions in the world to promote the sector in the state.

7. To invest in and encourage research & development of technologies to create a

strong IP driven technology base in the state.

8. To create entrepreneurial opportunities in the Biotechnology sector to boost

Biotechnology entrepreneurship in the State.

9. To make Gujarat a preferred destination for Biotechnology Industry by providing

proactive, congenial and industry-friendly climate for BT companies.

10. To achieve higher level of domestic and export revenue turnover resulting in

enhanced productivity and augmentation of Gross State Domestic Product (GSDP).

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2.3. Objectives
1. To establish Gujarat as a preferred & globally – competitive destination for

manufacturing of Biotechnology products and services and to reach a turnover target

of Rs. 15,000 Crores.

2. To create a professionally competent manpower pool of 25,000 human resources in

the Biotechnology sector.

3. To create employment opportunities for more than one lakh human resources in

Biotechnology sector by 2021.

4. To promote creation of Intellectual Property (IP) in the BT sector by facilitating R&D

institutions and contributing more funds to R&D in the BT sector.

5. To encourage cutting-edge Biotechnology research, build world-class infrastructure

and attract world’s best talent to contribute to the State’s development.

6. To develop Biotechnology entrepreneurship and promote development, management

& commercialization of Bio-technologies with an aim of branding Gujarat as a hub for

Biotechnology start-ups, entrepreneurship, technology management and

commercialization.

2.4. Definitions

1) Biotechnology

“The application of Science & Technology to living organisms as well as parts, products

and models thereof, to alter living or non-living materials for the production of knowledge,

goods and services’’

2) A Biotechnology Product

'Biotechnology (BT) Product' would include a product, which uses or is derived by using

(a) living systems, (b) enzymes, (c) Proteins (d) Bio-catalysts (e) Bio-molecules and any

of the following processes:

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 a) Genetic Engineering;

b) Bio process engineering, Protein engineering or Tissue engineering;

c) Modern Biotechnology braches like Genomics, Proteomics, Bioinformatics,

Synthetic Biology, Pharmacogenomics, Metabolomics, Nano-Biotechnology based
products and processes;

d) Bio-Transformation;

e) Molecular breeding;

f) Molecular and Genetic Diagnostics (Providing Business to Business services);

g) Bio Chips;

h) Vaccines including recombinant vaccines for use in humans or animals;

i) Recombinant gene therapy products including nucleic acids, proteins and

combinations thereof, viruses, or genetically engineered micro-organisms;

j) Stem cell and Cell Culture based products;

k) RNA interference (RNAi) based products;

l) Products of synthetic Biology;

m) Probiotics and other Biotechnology based nutraceuticals;

n) Bio-fertilizer, Bio-pesticides and similar products;

o) Tissue Culture;

p) Contract Research by CROs using Biotechnology process or products

3) A Biotechnology Unit

'Biotechnology (BT) Unit' means a unit or an undertaking engaged or engaging in

manufacturing of Biotechnology products or in delivery of Biotechnology related services

to any industrial unit.

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4) Expansion/Diversification

An expansion and/or diversification implies investment carried out by a Biotechnology unit

with an objective of increasing production or service capability for Biotechnology products

or services with or without forward/backward integration, in Gujarat, with an investment of

more than 50% of its existing gross fixed capital investment on the date of initiating

expansion/diversification, and commencing production from said expansion/

diversification either during the operative period of the Policy, or in case expansion/

diversification was undertaken during last one year of the operative period of the Policy,

within one year from the date of coming to an end of this Policy. For computing 50%

additional investment requirement of GFCI, the GFCI investment at the site of existing

production facility where expansion/diversification is carried out will be considered,

provided that relocation of the plants from anywhere within Gujarat will not be allowed.

5) An Existing Biotechnology Unit

An existing Biotechnology unit would mean a Biotechnology unit that existed as a legal

entity existing as a legal entity was engaged in manufacturing of products or delivering of

services before the date of announcement of this Policy anywhere in Gujarat.

6) Horizontal Biotechnology Parks

Horizontal Biotechnology Park means a site which is developed during the operative

period of this Policy in minimum area of 10 Acres of which 70% of total saleable/leasable

area is allotted to at least five Biotechnology units and minimum 60% of such area

assigned for BT units is actually occupied with operational BT units within one year from

coming to an end of this Policy.

7) Vertical Biotechnology Parks

Vertical Biotechnology Park means new development undertaken during the operative

period of Policy in the nature of either a vertical development in the shape of a tower

or a group of towers with minimum 1,00,000 sq. ft. of saleable/leasable area out of

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which 70% of saleable/leasable area is allotted or to be allott ed to at least three

Biotechnology or IT units; or a vertical development in the shape of a tower or a group

of towers with minimum 3000 seat capacity built by any Biotechnology unit/IT unit of

which 60% capacity is actually occupied within one year from coming to an end of

this Policy.

8) Eligible Units

A Biotechnology unit undertaking investment to begin manufacture or service of

Biotechnology products or an existing unit undertaking expansion or diversification will

be eligible for incentives under this Policy. An existing unit, making a separate

investment in a new geographical location (Atleast5kms away from any of its existing

assets), without causing any relocation of its plants or other assets will also be eligible

as a new eligible unit. New eligible units will also get benefit for one-time expansion

or diversification during the operative period of this Policy, if they so undertake.

9) Micro, Small and Medium Enterprises (MSME)

MSME in Biotechnology Industry shall be construed as per the definition under the

MSME Act 2006 (as amended from time to time) of the Government of India.

10) Gross Fixed Capital Investment (GFCI)

Gross Fixed Capital Investment (GFCI) for applicant units, means the investment

made in building, plant and machinery and other related fixed assets including

common infrastructure such as effluent treatment plant, testing facilities, shared data

centre, excluding land and buildings, required to manufacture end products or provide

services by eligible unit for setting up new unit or for undergoing

expansion/diversification up to within one year from the date of production or till one

year from coming to an end of this Policy, whichever is earlier. For deciding incentives,

in case of Units, eligible GFCI made in building will be capped at 20% of total GFCI.

The GFCI for parks will include investment in all facilities listed for the unit, except the

building for any of the units if that is not a shared facility. For all units as well as parks
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and other category of applicants, the cost of land will not be inclu ded in computation

of GFCI.

11) Built-up Area

Built-up area means the area covered by a building on all floors.

12) Eligible Start-up

An entity shall be considered a start-up if it meets the definition of start-up as decided

by the Government of India from time to time. To begin with, an entity shall be

considered as a ‘Start-up’ –

(i) Up to five years from the date of its incorporation/registration,

(ii) If its turnover for any of the financial years has not exceeded Rs. 25 crores, and

(iii) It is working towards innovation, development, deployment or commercialization

of new products, processes or services driven by technology or intellectual

property; Provided that any such entity formed by splitting up or reconstruction of

a business already in existence shall not be considered a ‘start-up’; Provided

further that in order to obtain tax benefits a start-up so identified under the above

definition shall be required to obtain a certificate of an eligible business from the

Inter-Ministerial Board of Certification consisting of:

a) Joint Secretary, Department of Industrial Policy and Promotion,

b) Representative of Department of Science and Technology, and

c) Representative of Department of Biotechnology.

(iv) Entity means a private limited company (as defined in the Companies Act, 2013),

or a registered partnership firm (registered under section 59 of the Partnership

Act, 1932) or a limited liability partnership (under the Limited Liability Partnership

Act, 2002).

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(v) An entity shall cease to be a start-up on completion of five years from the date of

its incorporation/registration or if its turnover for any previous year exceeds Rs.

25 crores.

(vi) Turnover is as defined under the Companies Act, 2013. 4.

(vii) An entity is considered to be working towards inn ovation, development,

deployment or commercialization of new products, processes or services driven

by technology or intellectual property if it aims to develop and commercialize:

a) A new product or service or process, or

b) A significantly improved existing product or service or process that will create

or add value for customers or workflow.

Provided that the mere act of developing any of following:

a. products or services or processes which do not have potential for

commercialization, or

b. undifferentiated products or services or processes, or

c. products or services or processes with no or limited incremental value for

customers or workflow would not be covered under this definition.

would not be covered under this definition.

13) Eligible Biotechnology Incubator

Eligible Incubator for the purposes of this Policy means an organization registered

as an incubator, engaged in accelerating the growth of start-ups through host of

support services and resources such as space, funding support, mentoring, market

linkages and business management services, which incubates minimum 10

incubatees at a time and out of which minimum 60% are from Biotechnology sector.

For new incubators being setup under this Policy, the incubator should get 06

incubatees within 2 years from the date of application out of which minimum 60% will

be from Biotechnology sector to be eligible for this assistance.

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 14) Industrial Association

Reference to word ‘Industrial Association’ in the policy shall imply registered

industrial association under appropriate act or approved by Government of Gujarat.

15) Institution

Reference to word ‘institution’ in the Policy shall include R&D institutions setup by

state or central Government; or colleges, universities, institutions approved by

UGC/AICTE/ by an act of central or state Government.

16) Eligible Project Cost

The total cost of implementation of the project for which the financial assistance is

sought. For the purpose of calculating eligible project cost for a BT Park the cost of

land and of buildings of individual unit shall not be considered. For computing eligible

project cost for Finishing School or R&D Institution, the cost of land and of buildings

will not be considered.

2.5. Incentives

2.5.1 Incentives for Biotechnology Park: Following incentives would be provided to

greenfield Biotechnology Park

a. Capital Subsidy:

I. Horizontal Biotechnology Parks will be provided capital subsidy @ 25% of gross

fixed capital investment (GFCI) in buildings and infrastructure facilities, excluding

the cost of land, subject to a ceiling of Rs. 25 crores.

II. Vertical Biotechnology Parks will be provided capital subsidy of Rs. 300 per sq.

ft. for built -up area subject to a ceiling of Rs. 25 crores.

b. Registration/Stamp Duty Concession: The developer of Biotechnology Park will

be eligible for 100% reimbursement of Stamp Duty, Registration Fee and Fee for

conversion to Non- Agriculture, excluding the premium paid to government for Non-
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 Agriculture use, paid on sale/lease/transfer of land for developing Biotechnology

Park.

c. Incentive on Power Tariff and Electricity Duty:

I. Biotechnology Park will be given power tariff subsidy at the rate of Rs. 1 per unit

in the billed amount of the utility as promotional incentive on reimbursement basis

for a period of five years with effect from the date, beginning any time during the

operative period of Policy, as selected by the developer.

II. Biotechnology Park will be given 100 % reimbursement for electricity duty paid

for a period of five years on coterminous basis with power tariff subsidy.

III. Above assistance will be available to Biotechnology Park on power purchased

from the State Electricity Distribution Companies or power distribution licensees.

Biotechnology Park either generating power from its captive power plant or

getting electricity through open access will not be eligible for the incentive.

2.5.2 Incentives to Biotechnology Units

The eligible Biotechnology Units will be entitled to following incentives in addition to any

incentives that they might be getting under any scheme of the Government of India:

a. Capital Subsidy: Eligible Biotechnology units shall be entitled to the following capital

subsidy on reimbursement basis:

I. Units with GFCI up to Rs.50 crores shall be eligible for a capital subsidy of up to

10% of the GFCI, with a ceiling of Rs. 5 crores.

II. Units with GFCI above Rs.50 crores shall be eligible for a capital subsidy of Rs.

5 crores per unit and additional 5% of the incremental GFCI over and above Rs.

50 crores subject to an overall ceiling of Rs. 50 crores.

b. Interest Subsidy: Eligible Biotechnology units shall be entitled to avail Interest

subsidy at the rates and norms defined below:

I. Interest subsidy assistance shall be eligible for a maximum duration of five years.
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 II. Eligible Biotechnology units will be entitled to interest subsidy assistance from

the date of making application or when actual interest repayment to the lending

financial institutions, after moratorium if any, begins based on the choice of the

unit. However, the unit will be entitled for interest assistance only if the interest

repayment has begun during the operative period of the current Policy.

III. BT units with borrowings up to Rs. 50 crores shall be entitled to an interest

subsidy at the rate of 5% with a ceiling of Rs. 2.5 crores per annum.

IV. BT units with borrowings above Rs. 50 crores shall be entitled to an interest

subsidy of Rs. 2.5 crores plus 2% of borrowings in excess of Rs. 50 crores,

subject to an overall ceiling of Rs. 10 crores per annum.

V. Interest subsidy as mentioned above shall be given only if the borrowing is from

a bank or a financial institution based in India and is in Indian Rupee

denomination. The amount of assistance so given as interest subsidy shall not

exceed interest liability of eligible unit.

c. Lease Rental Subsidy: Eligible BT units taking developed office space on lease for

their operations will be provided lease rental subsidy, at the scale of 50 sq. ft. per

employee, for five years on reimbursement basis at the following rates:

I. Rs. 8/ sq. ft./ month for units up to 20 employees

II. Rs. 5/ sq. ft./ month for units with >20 but up to 100 employees

III. Rs. 3/ sq. ft./ month for units with > 100 employees

Provided, that the lease rental subsidy shall not be more than the actual lease rental.

d. VAT/CST/GST Incentive:

In light of proposed migration to GST based system from VAT based system, the

State Government will examine issuance of separate policy for providing GST linked

incentives.

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e. Incentive on Power Tariff and Electricity Duty:

I. Eligible BT units will be given power tariff subsidy at the rate of Rs. 1 per unit in

the billed amount of the utility as promotional incentive on reimbursement basis

for a period of five years.

II. Eligible BT units will be given 100 % reimbursement for electricity duty paid for a

period of five years on coterminous basis with the power tariff subsidy.

III. Existing units undertaking expansion/diversification will be entitled for power tariff

subsidy and electricity duty reimbursement only for additional power consumed,

attributable to such expansion/diversification.

IV. Above assistance will be available to eligible BT units on power purchased from

the State electricity distribution companies or power distribution licensees. The

eligible BT units either generating power from its captive power plant or getting

electricity through open access will not be eligible for the incentive.

V. BT units will be provided uninterrupted power supply, subject to feasibility.

f. Employment Generation Incentive through EPF Contribution:

Eligible Biotechnology units will be given the benefit of reimbursement of the EPF

contribution made for their incremental employees operating out of their facilities in

Gujarat for a period of five years. This reimbursement would be made subject to the

following criteria:

I. 100% of EPF amount paid in case of female employees

II. 75% of EPF amount paid in case of male employees

III. The ceiling of EPF amount per employee will be 12% of Employee’s basic salary

plus applicable DA and retaining allowance.

IV. For existing units the assistance will be available for incremental employee count

beyond the count that existed before undertaking expansion or diversification,

occurring during the Policy period for a period of five years for each such

incremental count. For this purpose average employee count of previous one

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 year before commencement of operations from new setup/ expansion/

diversification shall be treated as base employee count and incremental count,

which will be computed over such base count, happening every year during the

Policy period will be entitled to such benefit for duration of five years.

V. For this benefit, reference to word ‘operating out of their offices in Gujarat’ would

mean that the employee is physically operating out of that office and staying in

Gujarat.

g. Patent Assistance

I. Assistance at the rate of 50%, subject to a ceiling of Rs.2 lakhs per patent for

domestic patent and Rs. 5 lakhs per patent for international patent, for meeting

with the expenditure for obtaining patents will be available to any eligible MSME

BT units/ institutions and universities.

II. Total quantum of assistance for obtaining such patents shall be limited to Rs. 25

lakh for international and Rs. 10 lakhs for domestic patents per unit/institution.

III. Fees paid to patent attorney and patent service centre will be eligible expenditure

towards cost for assistance.

IV. The assistance will be in the nature of reimbursement.

h. Skill Enhancement

I. Finishing School: Capital assistance up to 50% of the eligible project cost,

subject to a ceiling of Rs. 1 Crore will be given to units/ institute setting up an

exclusive Biotechnology finishing school. Additional assistance of 50% of

operating expenses subject to a ceiling of Rs. 10 Lakhs / module, with each

module having duration of at least 4 to 6 months, having batch strength of at least

20 students will be given. Finishing school will have to run modules as approved

by the Gujarat State Biotechnology Mission. If a finishing school is availing

assistance from any other Government organisation than quantum of assistance

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 will be so limited to ensure that total assistance from all Government

organisations does not exceed 90% of the eligible project cost.

II. To promote capacity building for Biotechnology units in MSME sector, the State

shall provide assistance to personnel on payroll in new Biotechnology unit and

new personnel on payroll in Biotechnology units undertaking expansion in MSME

sector by reimbursement of up to 75% of course fees subject to a ceiling limit of

Rs. 5000 per person for training period of 1 week or more duration at institutes

recognized by UGC/ State Government/ AICTE/DSIR.

III. Any eligible Biotechnology unit getting assistance under this Policy will be

required to take interns at a rate of minimum one intern for every twenty

employees on its payroll during the period it gets assistance. Such intern(s) will

be paid an honorarium/stipend at rates better than that under Minimum Wages

Act. This mechanism of hiring interns will be different from and in addition to the

Scheme of Apprenticeship by Government of India, if applicable. This will help

building a skilled resource base within the country.

i. Support to R&D Institutions / Units / Associations:

In order to give impetus to the Research and Development, support will be

provided to R&D institutes / Units / Associations.

I. New R&D Institutes or facility being set up for biotechnology sector, including

shared industrial testing facilities, will be provided assistance up to 60% of the

eligible project cost, excluding land, subject to a maximum ceiling of Rs 50 lakhs.

II. Assistance for Contract/Sponsored research work for Biotechnology projects

from any industrial unit / industry association to recognized R&D

Institution/University/ Colleges in Gujarat approved by UGC/Government/AICTE

will be considered at 50% of the eligible project cost, excluding cost of land and

building, subject to a maximum of Rs25lakhs. Total ceiling of assistance for

contract/sponsored research work to any individual unit/industry association,

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 during the Policy period shall be limited to a total of Rs. 25lakhs.The contract/

sponsored research work shall be screened by GSBTM before approval and

before the research work is undertaken. Pre-existing and ongoing research

projects at the time of issuance of this policy shall not be eligible for this incentive.

The assistance will be given directly to R&D Institution/ University/ Colleges upon

completion of projects.

j. Market Development Support:

I. Assistance to eligible Biotechnology MSME units or Biotechnology start-ups for

participation in International Trade Fairs outside India at the rate of 50% of

expenditure towards (i) total rent of stall or rent of space and amount paid to

organizer towards creation of stall and on rented space (ii) product literature/

catalogue and (iii) display material subject to maximum Rs. 50,000 will be

provided. Eligible Biotechnology MSME units/Start-up will be entitled to avail of

this assistance maximum two times during the operative period of this Policy.

The assistance would be in the nature of reimbursement. Biotechnology MSME

units/ Start-up shall have to apply within three months from the date of

participation for the assistance.

II. Assistance to Industry Associations for participation in International Trade Fair

as Gujarat Pavilion outside India @ 50% of total rent subject to a ceiling of Rs.

10 lakhs will be provided. Minimum five industrial unit’s participation will be

necessary as part of group to get this assistance. Assistance shall be in the form

of reimbursement and the association shall have to apply within three months

from the date of such participation.

III. Industry Associations organizing Seminars / Exhibitions / Workshops outside

Gujarat but within India will be provided support@ 50% of total rent subject to a

ceiling of Rs. 2 lakhs. Minimum five industrial unit’s participation will be necessary

as part of group to get this assistance. Assistance shall be in the form of

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 reimbursement and the association shall have to apply within three months from

the date of such participation.

IV. Market development support assistance will be eligible maximum two times for

any applicant unit/association/organization during the operative period of this

policy.

k. Assistance for Quality Certification

Biotechnology MSME unit will be entitled to avail the benefits & assistance for Quality

Certification as part of ‘Financial Assistance for Quality Certification’ under ‘Scheme for

Assistance to Micro, Small and Medium Enterprises (MSMEs)’, framed under Gujarat

Industrial Policy, 2015 vide Government Resolution No. SSI/102014/924840/CH, dated

19-01-2015, as amended from time to time.

l. Registration/Stamp Duty Concession

Eligible BT unit will be entitled to 100% reimbursement of Stamp Duty, Registration Fee

and Fee for conversion to Non- Agriculture, excluding the premium paid to government

for Non-Agriculture use, paid on sale/lease/transfer of land and office space for the first

transaction.

2.5.3 Incentives to Biotechnology Incubators

An eligible Biotechnology Incubator will be entitled to following incentives in addition to any

incentives that they might be getting under any scheme of the Government of India:

a. Capital Assistance: Eligible Incubators will be provided one time capital assistance

at the rate of 50% of Gross Fixed Capital Investment (GFCI), excluding cost of land

and building, for setting up an incubator, subject to a ceiling of Rs. 1 Crore. Promoter’s

contribution should not be less than the support obtained from Government of

Gujarat.

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b. Mentoring Assistance: Eligible Incubators will be entitled to a mentoring assistance

of Rs. 5 lakhs per annum.

c. Operating Assistance: Eligible Incubators will be entitled to a matching grant of 25%

of funds mobilized by them from non - governmental sources, subject to a ceiling of

Rs. One Crore per annum for meeting their operational expenses.

d. Assistance for Procurement of Software: Government will support the

procurement of key software required for development and testing purpose at the

incubator attached with an educational institution or a university as recognized by

UGC/ State Government/ AICTE at the rate of 50% of software cost subject to a

ceiling of Rs. 50 Lakhs.

e. Stamp Duty & Registration Fee Reimbursement: Eligible Incubators will be entitled

to 100% reimbursement of Stamp Duty, Registration Fee and Fee for conversion to

Non- Agriculture, excluding the premium paid to government for Non-Agriculture use,

paid on sale/lease/transfer of land and Office Space for the first transaction.

f. Incentive on Power Tariff and Electricity Duty:

I. Eligible Incubators will be given power tariff subsidy at the rate of Re. 1 per unit

in the billed amount of the utility as promotional incentive on reimbursement basis

for a period of five years with effect from the date, beginning any time during the

operative period of Policy, as selected by the Incubator.

II. Eligible Incubators will be given 100 % reimbursement for electricity duty paid for

a period of five years on coterminous basis with power tariff subsidy.

III. Above assistance will be available to Eligible Incubators on power purchased

from the State electricity distribution companies or power distribution licensees.

Eligible Incubators either generating power from its captive power plant or getting

electricity through open access will not be eligible for the incentive.

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2.5.4 Incentives to Biotechnology Start-ups

a. The Start-ups require enhanced level of support during early stages. Once they have

a product, start acquiring customers, they get the needed visibility and marketing

linkages etc. to scale up. However, it is equally true that a majority of start -ups fail

for many reasons, including due to lack of entrepreneurial skills, lack of objective

assessment of market, ambiguity on product, competition, lack of ability to mobilise

funding support or scaling up, etc. Nonetheless, to ensure entrepreneurial spirit is

nurtured, mentored and supported, enhanced incentives are prescribed during early

stages in the life of a business/venture. Accordingly, it is proposed that for a period

of first two years the venture/business will be provided with enhanced support, with

expectations that either the business model will prove itself and scale up to avail

benefits as Biotechnology unit or will realise the lack of potential in the business plan

to move on to alternative options.

b. The Eligible Start-ups will have the option of availing assistance either under the start-

up Policy of Industries and Mines Department or under the current Policy of the State

Government. In addition to any incentives under any scheme of the Government of

India, the eligible start-ups will be entitled to following incentives:

I. Stamp Duty & Registration Fee Reimbursement: Eligible start- ups will be

entitled to 100% reimbursement of Stamp Duty, Registration Fee and Fee for

conversion to Non- Agriculture, excluding the premium paid to government for

Non-Agriculture use, paid on sale/lease/transfer of land and Office Space for the

first transaction.

II. Marketing & Product Development Assistance: An assistance of Rs. 1 lakh

will be provided to eligible start-ups for getting product prototype developed

through outsourcing and an assistance of Rs. 1 lakh will be provided for

marketing support.

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 III. Lease Rental Subsidy: Eligible start-ups taking space on lease for their

operations will be provided lease rental subsidy, at the scale of 50 sqft per

employee, for two years on reimbursement basis at the rate of Rs.15 per sqft per

month.

IV. Capital Assistance: Eligible start-up will be provided capital assistance at the

rate of 50% of capital expenditure excluding land, for setting up a pilot production

facility subject to a ceiling of Rs. 10 lakhs, within 2 years of making its application

under this Policy.

V. Interest Subsidy: Eligible start-ups will be provided interest subsidy at the rate

of 9% per annum subject to ceiling of Rs. 2 lakhs per year. Such interest subsidy

shall be eligible for a maximum duration of two years. Eligible start-ups will be

entitled to interest subsidy assistance from the date of making application or

when actual interest repayment to the lending financial institutions, after

moratorium, if any, begins based on their choice. However, the start-up will be

entitled for interest assistance only if the interest repayment has begun during

the operative period of the current Policy.

VI. Patent Assistance:

 Eligible start-ups will be provided assistance at the rate of 75% of cost of

obtaining patent subject to ceiling of Rs. 2 lakhs per patent for domestic

patent and Rs. 5 lakhs per patent for international patent.

 Total quantum of assistance for obtaining such patents shall be limited to

Rs. 4 lakhs for domestic and Rs. 10 lakhs for international patents per

start-up.

 Fees paid to patent attorney and patent service centre will also be

considered eligible expenditure towards cost for computing assistance.

 The assistance will be in the nature of reimbursement.

VII. Skill Certification Grant: Eligible start-ups will be provided skill certification

grant at the rate of Rs.5000 per skill certification per person subject to overall
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 ceiling of Rs. 20,000 per month per start - up. This assistance will be eligible for

a maximum duration of 2 years.

VIII. Progression to other Policies: Eligible Start-ups will be entitled to benefits

under this Policy for a period of two years or till they cross any of the following

milestones, whichever is earlier:

 Number of employees – direct or indirect crosses 20

 Turnover exceeds Rs. 25 crores per annum

An eligible start-up, on completion of its entitlement for benefits under this Policy

as in para2.5.4 above shall be entitled to avail benefits under the Biotechnology

Policy as a new unit, notwithstanding its continuing operations at the end of two

years. Investment made during the benefit period as start-up and scale up

investment made within a period of 18 months, once the benefits under this Policy

cease, will be taken as ‘New Investment’ for computing Gross Fixed Capital

Investment (GFCI) under Biotechnology Policy of the State Government. The unit

will be entitled to benefits under Biotechnology Policy as a new unit for full period

and full amount of eligibility. Period of assistance as well as amount of assistance

as start- up will be ignored while computing assistance and period of assistance

under Biotechnology Policy. Any start-up choosing to scale up before completion

of milestones mentioned above, will still be entitled to incentives as a new BT

unit, however incentives availed as a start-up will be deducted from the incentives

admissible as new BT unit.

2.5.5 Special provision for Mega Projects or Centre of Excellence by Global

Players

a. To attract large investment from global or large players in Biotechnology, the

incentives applicable to the Mega project under “Scheme of assistance to

Mega/Innovative Projects” vide IMD Government Resolution No.

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 MGP/102009/58782/I dated 29/12/2009 as amended time to time, shall be applicable

to the Mega projects in Biotechnology sector. For this purpose any Biotechnology

Unit making cumulative GFCI investment of more than Rs. 1000 crores within five

years from the date of making application under this Policy will be treated as Mega

project.

b. In order to create excellence in human resource and encourage strong public private

partnership within state, GSBTM will facilitate development of Centre of Excellence/

Institute by interested company with revenue of more than Rs. 10,000 crores on case

to case basis. Incentives to be awarded to such company will be worked out through

mutual negotiations and SLAC setup for Mega projects scheme of Industries

Department will be recommending authority to the government for incentives to be

awarded to the applicant unit.

c. For incentives under para 2.5.5 the terms and conditions as well as procedure listed

under the “Scheme of assistance to Mega/Innovative Projects” vide IMD Government

Resolution No. MGP/102009/58782/I dated 29/12/2009 as amended time to time

shall apply.

2.5.6 Investor Facilitation

a. The role of Government of Gujarat will primarily be that of a facilitator. An empowered

‘Single Window Clearance Mechanism’ will be set up and operationalized for granting

approvals and clearances for establishing New Units in the State. It will be supported

by a ‘state-of-the-art centralized helpdesk call centre on 24x7 basis.

b. Gujarat State Biotechnology Mission will act as a Nodal Agency for hand holding and

providing effective liaison with various Government Departments/agencies/bodies.

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3. POLICY IMPLEMENTATION
a. The office of Mission Director (GSBTM) will implement this Policy in consultation

with the Department of Science and Technology (DST).

b. The State Government will constitute Empowered Committee(s) for evalu ating

proposals and granting approvals for eligible assistance to applicants under this

Policy.

c. Any eligible BT unit or BT Park will have the option of availing incentives either

under this Biotechnology Policy or the Industrial Policy of Government of Gujarat.

However, eligible units or the BT Park will be entitled to incentive under only one

Policy of the government and not out of both policies for individual items.

d. Incentives under this Policy will be in addition to any incentives that the

unit/institutes might avail from any agency outside the Government of Gujarat.

Provided, that total incentives for every item head cannot be more than 90% of

actual expenditure undertaken by that unit under that item head from all

Government sources.

e. The incentives for expansion/diversification will be computed for the actual

investment newly made for the expansion/diversification and historical

investment prior to undertaking expansion/diversification will not be considered.

f. Any BT Unit, Park, Incubator, Start Up, Finishing School, R&D Facility etc.,

availing incentives under the policy, will not be allowed to carry out change of use

at the facility and will have to continue running operations for the purpose for

which Government Assistance under this policy have been availed. If the

incentive availing unit or entity carries out any change in use, then it will have to

return to the Government all assistance it has availed under this policy with 8

percent per annum interest. Change of product/ operation within Biotechnology

Sectors will not be considered change of use. If the unit or entity brings about

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 change of use then the recoverable amount for the Government under this clause

shall have priority over all other dues of the unit/entity.

g. Any issue of interpretation of this Policy will be dealt by the Department of

Science and Technology and the decision of such shall be final.

4. POLICY IMPLEMENTATION GUIDELINES

The Department of Science and Technology will issue a scheme containing detailed

implementation guidelines in consultation with the concerned Department in order to

achieve the goals and objectives of this Policy.

5. OPERATIVE PERIOD OF POLICY

This Policy shall come into force with effect from the date of issuance of Policy GR and

shall remain in force for a period of five years or till the declaration of a new or revised

Policy, whichever is earlier. Only those BT units or BT Parks which commence

production/operations either during the operative period, or having applied for assistance

under this Policy during the operative period, within one year from coming to an end of this

Policy, shall be eligible for incentives.

6. These policy is issued with the concurrence of Industries & Mines Department and Finance
Department vide its note dated 30/11/2016 and 5/12/2016 respectively on this department’s
file of even number.

By order and in the name of the Governor of Gujarat,

(Dhananjay Dwivedi)
Secretary to the Government of Gujarat,
Department of Science and Technology
To,

1. Principal Secretary to Hon’ble Governor Shri, Raj Bhavan, Gandhinagar.

2. Chief Principal Secretary to Hon’ble Chief Minister

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3. Principal Secretary to Hon’ble Chief Minister.

4. Secretary to Hon’ble Chief Minister.

5. Personal Secretary to Hon’ble Deputy Chief Minister

6. Secretary to Hon’ble Ministers, Government of Gujarat.

7. *Personal Secretary to the Leader of Opposition Party in Gujarat Legislative Assembly,

Gandhinagar

8. *Personal Assistant to all Hon’ble Parliamentary Secretaries

9. *Deputy Secretary to Chief Secretary, Government of Gujarat.

10. *Registrar, Hon’ble Gujarat High Court, Ahmedabad.

11. *Secretary, Gujarat Vigilance Commission, Gandhinagar.

12. *Secretary, Gujarat Public Service Commission, Ahmedabad.

13. *Secretary, Gujarat Legislature Secretariat, Gandhinagar.

14. *Secretary, Gujarat Civil Service Tribunal, Gandhinagar.

15. All Administrative Departments

16. VC and MD, GIDC, Udyog Bhavan

17. Industries Commissioner, Government of Gujarat

18. All Heads of the Departments

19. All Collectors

20. Mission Director, GSBTM

21. Pay & Account Offices, Ahmedabad/Gandhinagar

22. Account General (A&E) Gujarat, Post Box No. 2201, Rajkot.

23. Account General (A&E) Gujarat, Ahmedabad Branch, Ahmedabad.

24. Account General (Audit-1) Gujarat, MS Building, Ahmedabad.

25. Director, Account & Treasuries, Gujarat State, Gandhinagar

26. All District Treasury Offices

27. Resident Audit Officer, Ahmedabad/Gandhinagar

28. Select File

*By Letter

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